Bitcoin's recent increase was driven by several global developments, but the market is currently reassessing its position. The economic environment may alter trends.
Bitcoin's Growth Dynamics
The rise of Bitcoin began to be observed after a series of global events, starting with tariff shocks in early April, followed by a UK-U.S. trade agreement, and finally a tax suspension agreement between the U.S. and China. These events helped push Bitcoin from levels below $75,000 to triple-digit gains, making it a standout asset amid economic uncertainty.
Impact of Trade Agreements
However, the crypto market is now reassessing its dynamics. As traditional risk assets such as equities and fiat currencies show signs of recovery, some analysts suggest that Bitcoin’s edge may be narrowing. Nansen analyst Aurelie Barthere stated, "Bitcoin outpaced everything because it was mostly shielded from tariff-related fallout."
Future of the Crypto Market
Kirill Kretov from CoinPanel echoed this sentiment, describing the trade deal as a "temporary boost" for risk assets. While the tariff suspension helped reduce inflationary pressure, Kretov warned about potential market instability: "As the 90-day clock runs out, we may see fresh volatility—especially if the next round of negotiations stalls." Despite the recent dip, market observers remain cautiously optimistic. The short-term correction is viewed by some as a breather rather than a reversal.
In light of growing market instability, analysts indicate a need to be prepared for changing volatility and potential price corrections for Bitcoin.
